Top subcategories

Top subcategories

... A. Republican measure to tax state banks out of existence
B. More involvement
IV. Federal Reserve Act (1913)
A. response to the perception of a money “trust” Pujo Commission
B. more elastic money supply, government can respond to the monetary needs of the
economy (monetary policy)
C. criticized for ...

... • Production and Unemployment in the Great
Depression changed that view.
• Production was extremely low. Employment was
extremely low.
• John Maynard Keynes argues a depressed
economy is the result of inadequate spending
and ‘sticky’ prices.
• Keynes also argues the government could help
out – if C ...

... economics to explain the Great Depression.
• He created the field of macroeconomics by viewing the economy in
terms of aggregates rather than as a sum of markets.
– Prices could be sticky so that aggregate demand determined aggregate
supply and there was no reason to expect that aggregate demand
...

... U.S. ___________________________________ policy of ________________.
U.S. establishes _________________________________.
____ & _______ emerge as most _______________ countries
Leads to a _____________________ to become the ___________________________.....
________________
...

... Contraction-During this stage business activity
slows down. IF this stage last to long the economy
could head into a recession.
Trough—this is the lowest point in the cycle, where
business activity levels off.
Expansion—The economy begins to recover.
People spend more money.
Peak-This period of pros ...

... The 1950s: The Post-war recovery
The1960s: Continued growth with some inflation
The 1970s’ stagflation
Controlling inflation and supply side economics
in the 1980s
Prosperity in 1990s (Low inflation and low
unemployment)
Slow down in 2000-2001; mild recovery in the
following years
...

... 1. What was the period of economic crisis that began in 1929?
Great Depression
2. What was Adolph Hitler’s political party called?
Nazi Party
3. What is Fascism?
Obedience to leader and loyalty to country
4. What was the League of Nations? What was it responsible for? Why was it unlikely to be succe ...

... GDP to 1,8% and is expected to fall further
because of weak results in neighbouring
economies depressing export profits.
Inflation rate of 4,5% is still above the target
of 2,5% but it is expected to fall.
...

... a number of years where
the U.S. saving rate was
negative, there is an indication
that Americans are beginning to
save again. This has the
potential to be one of the more
positive impacts of the
recession.
...

... collective bargaining- gave unions the
right to negotiate with employers
 Great Britain: John Maynard Keynes
proposed deficit spending- government
builds to hire the unemployed, the
unemployed will spend their $ and all
industries will get more money
...

... RECESSIONS IN U.S. HISTORY
5. The Recession of 1973-1975
What happened? During this period, there was economic stagnation in much of the Western world,
putting an end to the general post-World War II economic boom. It differed from many previous recessions—it was characterized by a stagnant economy ...

...  The CPI is an important figure because it affects nearly all
Canadians, either directly or indirectly. Eg CPP and Old Age
security and interest rates are based on it.
...

... of prices and wages. What changes in their behavior are indicated by the data
and how can they be explained? Next, the models that imply that price
flexibility may be destabilizing are identified and assessed. This requires in
particular an analysis of the role of changes in interest rates and price ...

... spending reduced even further. Governments tried to encourage spending, and lending, with low
interest rates and by putting money into the banking system. Low prices sound good for consumers
but deflation can lead to salary cuts or more unemployment as profit margins are reduced. This
especially aff ...

... in the system. If production increases at a slower rate to the money supply,
monetarists argue that there will be inflation. The money supply increases when
more money is printed or there are several loans and credit.
In 1979, the US had inflation which peaked at 20%. This caused the Fed to switch
t ...

Long Depression

The Long Depression was a worldwide price recession, beginning in 1873 and running through the spring of 1879. It was the most severe in Europe and the United States, which had been experiencing strong economic growth fueled by the Second Industrial Revolution in the decade following the American Civil War. The episode was labeled the ""Great Depression"" at the time, and it held that designation until the Great Depression of the 1930s. Though a period of general deflation and a general contraction, it did not have the severe economic retrogression of the Great Depression.It was most notable in Western Europe and North America, at least in part because reliable data from the period are most readily available in those parts of the world. The United Kingdom is often considered to have been the hardest hit; during this period it lost some of its large industrial lead over the economies of Continental Europe. While it was occurring, the view was prominent that the economy of the United Kingdom had been in continuous depression from 1873 to as late as 1896 and some texts refer to the period as the Great Depression of 1873–96.In the United States, economists typically refer to the Long Depression as the Depression of 1873–79, kicked off by the Panic of 1873, and followed by the Panic of 1893, book-ending the entire period of the wider Long Depression. The National Bureau of Economic Research dates the contraction following the panic as lasting from October 1873 to March 1879. At 65 months, it is the longest-lasting contraction identified by the NBER, eclipsing the Great Depression's 43 months of contraction.In the US, from 1873–1879, 18,000 businesses went bankrupt, including 89 railroads. Ten states and hundreds of banks went bankrupt. Unemployment peaked in 1878, long after the panic ended. Different sources peg the peak unemployment rate anywhere from 8.25% to 14%.